On Nov. 9, ZTE announced its establishment of the acquisition agreement with Hengjian Xinxin and Huitong Rongxin. The underlying asset of this transaction is 18.8219% the equity jointly held by Hengjian Xinxin and Huitong Rongxin in Sanechips.
It issued 85,321,100 A shares in total, accounting for about 2.15% of the total after issuance in full. Among them, 45,942,100 A shares were issued to Hengjian Xinxin, and 39,378,900 to Huitong Rongxin. The issuing price of the shares as consideration is 30.6 yuan per A share, with a restricted period of 12 months.
According to ZTE, after equity acquisition, it will control Sanechips, which will further reinforce its management of Sanechips. It will also help enhance the business efficiency of Sanechips and better prepare it for the new competition in 5G application, and further build its core competence in its main business area.